• 18 Jun 2009 at 2:04 PM

The Next Mortgage Mess

By Greg Michaels

Mortgage Fraud.jpgIf the mortgage market blows up again, the FHA told you so. Faced with record high demand for government backed home loans, the FHA is concerned that it can’t properly handle the additional volume and is going to get picked off.

“FHA will be challenged to handle its expanded workload or new programs that require the agency to take on riskier loans than it historically has had in its portfolio,” Kenneth Donohue, the inspector general for the Housing and Urban Development Department, told lawmakers today. “The surge in FHA loans is likely to overtax the oversight resources of FHA, making careful and comprehensive lender monitoring difficult.”

Evidently saying ‘no’ to loans that appear suspect is not a viable option.
Demand for FHA Loans Is Overtaxing Agency, HUD Official Says [Bloomberg]

Comments (12)

  1. 1
    Posted by guest | June 18, 2009 at 2:12 PM

    Reinflating old bubble so much easier than finding new one.

  2. 2
    Posted by guest | June 18, 2009 at 2:14 PM

    Its the summer of 2009!! Hello, we knew this… hahaha. No worries, the taxpayer has it covered.
    What next DB? You going to break the news that our home loan banks are insolvent?
    The first compartment has filled with water and the rest will fill soon…

  3. 3
    Posted by guest | June 18, 2009 at 2:20 PM

    BLANUS!

  4. 4
    Posted by guest | June 18, 2009 at 2:23 PM

    I fail to see how a loan requiring only 3% down could possibly be a problem.
    A. Mozilo

  5. 5
    Posted by guest | June 18, 2009 at 2:25 PM

    But but but… all I needed was FICO 620 and a pulse to get FHA! Now I’ll have to keep bunking with Ratigan and sloshing manpole as penance for BK’ing on my 4 bedroom Pulte Connecticut Tudor i bought on my analyst salary.

  6. 6
    Posted by guest | June 18, 2009 at 2:29 PM

    Re the FT interview with KKR , you want to believe that Roberts has kept a semblance of sanity about him and that Kravis might be coming around to that mind set. Death (the natural kind) is tough enough to contemplate w/o all the rest. If you guys don’t agree…..well, then, fuck you, right???…right???

  7. 7
    Posted by guest | June 18, 2009 at 2:36 PM

    You know what can properly handle the additional volume? Greg’s ANUS.

  8. 8
    Posted by guest | June 18, 2009 at 3:12 PM

    Who is Greg Michaels? What happened to John Carney?

  9. 9
    Posted by guest | June 18, 2009 at 3:16 PM

    Don’t you mean Ron Barney?

  10. 10
    Posted by Lowly Assistant | June 18, 2009 at 3:35 PM

    Please, respect. Lon Varney.

  11. 11
    Posted by guest | June 18, 2009 at 3:58 PM

    haha
    i have a part time summer job selling lemonade, i saved up $2,000, I just bought my first house. I’m 12. FML

  12. 12
    Posted by guest | June 18, 2009 at 4:40 PM

    A. Mozilo@4, 3% down? Surely you jest.
    Operators for our down payment assistence plans are standing by, and did you know you can now use your homebuying tax credit up front? No need to actually buy the house before claiming it!! Call today!!

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